Conditions for Effective Risk Sharing Against Marine Pollution: The Case of the Ría De Vigo
12 Pages Posted: 3 Feb 2017
Date Written: January 31, 2017
The question of how effective protection against environmental impairment can be provided has spawned much literature. One instrument that is often invoked to provide compensation for environmental damage is insurance. Traditionally, a distinction is made between first and third party insurance. First party insurance may be acquired by potential victims of marine pollution, such as fisheries seriously harmed by ship-source oil spills. Conversely, third party insurance is sought by polluters to cover their legal responsibility and, at the same time, protect the potential victims from polluters unable to meet their financial obligations.
Keywords: Risk sharing, marine pollution
JEL Classification: Q50, Q53
Suggested Citation: Suggested Citation